Insights on the Gold Bullion in Papua New Guinea: Dr. Clement Waine's Perspective
My Views on the Gold Bullion Bill:
These are my own views without reading the profiles of any of the companies involved, the draft bill, or the arguments (for and against) surrounding the bill.
1. PNG owned 22.5% of Lihir and 22.5% of Porgera and Mekere sold them in 2001.
2. Consequently, for the last 22yrs, the State of PNG had no recourse to the revenue of the sale of gold or the actual productions (i.e. gold bars);
3. We sold our interests in Lihir and Porgera for pittance (that’s a different discussion if you folks want to have it!)
4. For 2022 years PNGeans were happy!
5. Nobody complained!
6. The Lihir and Porgera mines are very lucrative gold mines in the world and Barrick and Newcrest had a field day over these mines in the last 22 years and nobody claimed their gold productions were PNG’s assets!
7. These mines were producing over 1 million oz each (check MRA register) and nobody said anything or claimed that these were “PNG assets”.
8. By law they are NOT PNG assets - these were sold by late Sir Mekere already. Done and dusted for 22 yrs! None of us complained. We were happy!
9. Ok Tedi mine produces around 500,000 oz of gold as concentrates and more recently through adoption of technology is selling as gold bars.
10. OTML has been selling these gold as commodities since 1991 and nobody has complained!
11. All our alluvial gold has been mined since 1922 from the famous gold fields of Bulolo Wau and all over this country and nobody complained!
12. They are still mining alluvial gold now and nobody complained!
13. Now Marape signed for gold productions to be consolidated through a mint and traded by a company, with PNG National Interest.
14. And, you are all crying foul
15. Where are you guys coming from? Under the rocks? Caves?
16. PNG owns 30% of the proposed mint from what I read, so what is the fuss about
17. We sold every ounce of gold dug out of PNG land and we never complained!
18. Marape is taking them back through this new bill. The State of PNG will now have a fighting chance to OWN, O-W-N, 30% of all gold produced in the country.
19. Maybe I do not fully understand the nitty-gritty of the commercial and legal arrangements but if the State of PNG is taking back 30% of all gold produced in this country, then why is everybody up in arms against this???
20. To begin with PNG owned ZERO, ZILTCH. NADA, NOTHING, in gold bars and now a bill, if enacted will bring 30% of the production back to PNG!
21. Of course, this is NOT expropriation, it will be commercial transaction but an exclusive arrangement to ensure some guarantee.
22. I have some issues with the shareholders of the companies involved. I know them from an earlier transaction and my recommendation is on record.
23. However, I will have to say that Simbus are ubiquitous! You read my lips well.
24. IDEALLY, I would have preferred that the State of PNG entered into a similar arrangement with Justin Parker, PNG’s biggest gold exporter. That is also a different discussion.
25. My recommendations would be that the bill (1) must require entity that owns and operates the mint to be dual listed on Singapore and POM and (ii) a national content aspect that allows PNG’s local participation.
26. CONCLUSION: PNG owned no gold bars and we were happy! Now Marape wants us to own 30% of the productions and we are not happy??? Yupela wanem kain sanguma, ya!!!!
John C Hocknull OAM, ML
Email: Sent by mobile phone
Posts
1. Mines are operated under commercial agreements whose terms are agreed to by government and companies through negotiations, etc. We have no say, we expect our learned people in power to speak on our behalf and do the deal in our favour. Hence our silence in the past.
ReplyDelete2. The gold in whatever form (ore/refined) is PNG's. Mining companies are able to access because we allow them to. They come with technology and money to do that and export the product, but the gold is ours to start with.
3. The technology for gold mint is not rocket science. We have it here in-country, Justin Parker is a good example and we also had another commercial mint in the past. Why do we have to bring in foreigners to re-invent the wheel and then own a share holding in it? Why not partner with Mr Parker and keep the money here and own our gold as well? If that is not feasible, why not get the proposers in on a build, operate and transfer arrangement?
4. If the government does not have money, why not get our super funds or PNG owned big businesses involved? Even better, why not sell shares on our stock exchange so every PNG citizen can be a shareholder? Why cant we think outside the box and give ourselves are real change at "taking back PNG?"
It's empowering to see such insightful perspectives on ownership and partnership in the mining industry; let's continue to advocate for our interests and explore innovative ways to benefit our nation collectively.
DeleteI'd go for the involvements of our super funds and public listing on the stock exchange for every PNGean to participate in the ownership. It is a profitable venture. Lets do it ourselves COLLECTIVELY.
ReplyDeleteDOCTOR....PLEASE SPEAK LIKE AN ORDINARY PLESS LINE PAPUA NEW GUINEAN AND EXPLAIN THE BILL PROPERLY TO PNG CITIZEN MASS IN A LAYMANS TERMS....YOU SPEAK LIKE A YOU GIVING A PHD LECTURES TO PHD STUDENTS....EXPLAIN THE DETAILS OF BILLS AS OPPOSE TO EXISTING ACTS OF PARLIAMENT...MR DOCTOR FOR THE PNG MASSES TO UNDERSTAND...SOVERIGNTY IS AT STAKE HERE...MAYBE A PHD LAWER WILL EXPLAIN THIS MUCH BETTER THAN YOU MR DOCTOR...
ReplyDeleteWhats the Real Issue and whats making complex by not allowing PNG to own 100% of GOLD BULLION FACTORY. Why not Not Allowing PNGEANS to own Shares in the Company and only few at Top Brackets to enrich them. Is the Government for the People for the few Greeds.
ReplyDeleteThe concept is good. But (1) let PNGeans invest and own this 100% or (2) let an outside technology build, operate and handover to PNG to own and operate. Why involving a K2 foreign company to take our sovereignty and rights away, making our constitution powerless and depriving our rights? Dr., don't bring yourself too low! Discuss and provide perspectives as a credible learned PNGeans for the common good. Your post contains elements of politics and biasness! Are you speaking for few elites or the rest of the 17 million PNGeans? Hilarious 😂
ReplyDelete